Last Monday’s signals were not triggered, as none of the key levels were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time Thursday.
Long Trades
- Long entry at a bullish price action reversal on the H1 time frame following the next touch of $4,824 or $4,374.
- Put the stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is $50 in profit by price.
- Remove 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to run.
Short Trades
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $5,345, $5,645, or $5,777.
- Put the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is $50 in profit by price.
- Remove 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
BTC/USD Analysis
I wrote last Monday that the price had been held by the resistance at $5,345 and we had a potentially bearish double top which might have formed there, so a sustained break above that level would be a bullish sign. There may also be new higher support at $5,240.
I remained medium-term bullish as long as the price remained above $5,000 which is an important psychological level.
This has kept things bullish, but the price has so far not been able to break the resistance at $5,345. I’d take the same approach today.
Regarding the USD, there will be a release of CPI data at 12:30pm London time, and FOMC Meeting Minutes at 6pm.